Feds blast state government over Adani

The federal government warns thousands of desperately-needed jobs in north Queensland are at risk after Indian mining giant Adani deferred a final investment decision on its controversial Carmichael coal mine.

The company's decision followed factional wrangling inside the Queensland government that delayed a cabinet discussion over royalty payments.

"It's a remarkable and embarrassing situation for Queensland that they don't even have a tax regime in place," federal Resources Minister Matt Canavan told ABC radio on Tuesday.

Premier Annastacia Palaszczuk, a member of Labor's Right faction, said the measure hadn't been put to a cabinet meeting on Monday as expected.

Senator Canavan described the 11th-hour decision as "unbelievable" and a "shocking condemnation of the chaos that exists inside the Palaszcsuk government".

It was putting at risk thousands of "desperately-needed" jobs in north Queensland, especially in Townsville where the unemployment rate was 11.3 per cent.

"People there are just exasperated," Senator Canavan said.

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Adani's decision appears to be an attempt to increase the pressure on the state government to follow through on a so-called "secret deal" to reduce the company's royalties in the first seven years of the mine's operation.

Under the deal, Adani would reportedly only pay $2 million in royalties annually, which could end up costing taxpayers $320 million in lost income.

Senator Canavan rejected criticism Adani was being given a tax holiday, likening it to landlord incentives for first tenants of major commercial office space.